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The RNS announcing the purchase of Osprey was 25th August last year. They've not had a year of running that subsidiary yet, so it's a bit early to say whether the TPG management is on track to extract value from the purchase.
Maybe it's because I'm just an old stickler but you are right about previous management ignoring shareholders and the BOD will likely have to pay for that.
I do think you do tend to gloss over that a lot of the consulting done is not your run of the mill consultancy and the AI element and expertise that comes with these high barrier space, defence, technology and aerospace contracts can be very lucrative when you have little competition. You do make it sound like TPG is just a bunch of IT contractor's which is a bit disingenuous. Remember Sapienza made a profit of €700K in the period before it was taken over and Osprey £200K. So a lot of this value destruction has been TPG's doing, not centralising and not addressing ballooning costs, look at Lift BV what a waste of money that was and investing millions into engineering for no returns. I can see a future for TPG as an independent if it starts to look back at the basics, it's just a shame others are so fed up that they don't have the patience for it. Like I said let's reserve judgement for the interims, the floor is 6.5p after all.
jellyroll ref 21.31 post As I read it and I will be corrected if I am wrong SAG have not made a formal offer so there is nothing to accept yet. They have indicated what they will offer. If they want too throw in five SAG shares for every TPG share I might listen. This indicative offer would still leave me in the red so sorry need a sweetener.
I am not sure what the BoD is doing there game plan seems to be not too engage so that SAG will not have the information to make a bid before the Interims. SAG have until 7 September to make a formal offer the interims are due on the 14 September. I would not expect another offer from someone after Marine Engineering before the Interims.
The board of TPG have failed to unlock the value in the company and as you suggest fatoomch SAG are a very effective BOD who over the years have been very successful at unlocking value in companies they have taken over. For me I will take the offer and reinvest the money in SAG
Fair point on the house.
I don't disagree there is value - and SAG bid is opportune - but TPG have failed to extract/realise that value and put the company in a position where a bid could come in.
I can't see TPG achieving 6.5p on its own two feet anytime soon. The majority of revenue comes from consulting. Huge turnover, no profit. Small margins.
I would take @7p then hedge by purchasing SAG who in turn could realise any locked in TPG value.
The house selling is an irrelevant analogy because correct if I'm wrong here but TPG isn't up for sale. Really this is starting to get tedious and we shouldn't be arguing amongst ourselves. SAG are 100% trying to extract value here and it seems there are people on here that just don't see it, TPG is worth more than the offer price and SAG know it. The interims could change the game somewhat and I really cant understand people wanting to sell before they have seen those fundamentals to chew over, if there has been progress 6.5p should not even be coutenanced.
At 6.5p. We know where those have gone.
No single insti held that specific number so will be interesting to see where they came from
tranches not ranges
22M+ shares bought in 3 ranges around 11.30 today.
OT - that's a good spot.
SAG seem to have thought many things through- including TPG selling off Marine and paying a special dividend in the interim. The SAG offer would be reduced accordingly.
Cat - I know you're also a long term holder and I can see where you're coming from but SAG aren't here to reimburse TPG shareholders nor line their pockets- that's what TPG should have done.
If the market price for a house was £500k - nobody would pay the owner £600k because that's what they bought it for.
Take what money? Like it has already been said that puts most of us at breakeven or at a loss and that includes II's. Not going to take advice from someone who has never posted on here before and likely bought in recently, if even at all.
What is the company worth. It is valued at 45m. Let's give it a notional p/e of 15. Gives us required earnings of 3m. It last made a surplus in 2018 of 180k.
Take the money!
I wonder if there's an FCA case here to consider? Some wiser informed heads will no more than me. But surely effectively attacking and rubbishing the company while at the same time still buying shares can't surely be vanilla can it?
SAG really not winning friends here. 6.5p is not a premium when most shareholders have paid that amount at the last placing, or more than that if they have bought shares in the years since. The placing funded the acquisitions of Polaris, Westek, Sapienza and Osprey so to use SAG's own words against them, it is incomprehensible for me as a shareholder to want to pass that benefit of those acquisitions in the long term onto SAG for effectively zero benefit to me. SP is just a fluid measurement that is 95% sentiment and 5% fundamentals and is by no means any good measure of value. If you are wanting to sell your shares before seeing the interims then frankly the stock market isn't for you, the floor is 6.5p and it's a crappy offer, I don't often applaud the BOD here (usually the opposite) but make no bones this needs to be called out for what it is, the offer is insulting.
Fatoomch I agree that is the name of the game and I wish you well
This caught my eye in RNS
“reduce the consideration of any offer by all or part of the amount of any dividend (or other distribution) which is paid or becomes payable by TP Group to its shareholders after the date of this announcement.”
Can only assume it is in regards to sale of maritime? You would have expected SAG to have had that deal sorted ? Maybe the proposed purchaser wants to only deal with TPG direct ?
As I said a few days back interesting times also noted the large trades at 6p yesterday that looked like sells are indeed buys from SAG
GLA OT
Poole, I'm no more familiar with SAG than yourself, but it does look as if the figures that they cite are cherry-picked and perhaps not on a like-for-like basis.
I don't know the take-over rules, but hopefully having declared that they are withdrawing their offer and issuing a de-ramping RNS, they are barred from buying more shares at the inevitably reduced post-speculation share price?
It appears that the over 58m shares that Science Group (SAG) acquired in TPG came from Rufler LLP who are in turn a holder of 3,974,751 shares in SAG (9.7% of their issued capital).
While not familiar with SAG they appear to be very thin on net assets relative to their market capitalisation, and at present quite a lot of debt relative to non-debt assets and are highlighting their EPS progress including relative to 2019 when it appears they reported losses! Or were there included write-offs that have flattered in reporting the subsequent near term rate of progress they have reported. Anyone more familiar with SAG recent history better able to comment and/or provide a perspective on the above ?
"Would they go hostile?" They already sound pretty hostile to me!
OT - yep, that was me. 6.5p would still see a profit for me on those shares I bought yesterday. That's the name of the game, right
As a long term, eternally disappointed shareholder - an out now at @7p would represent a result.
flo - the TPG BoD don't need SAG to discredit them.
Your timescale and target for return obviously far exceeds mine. A bird in the hand etc
Would they go hostile?
They are continuing to buy on the open market so why not?
Opinions?
More mud slinging from SAG. Interims should discredit the going concern myth and highlight the opportunistic nature of this approach
SAG’s RNS leaves the TPG BOD looking very silly, churlish and frankly incompetent.
I, for one, would be interested In seeing the TPG “detailed review” ahead of the vote and judging that as the basis for whether to vote for or against the 2 Directors being voted out.
Thank you! They sold their business. They are scared to loose their jobs because they failed to deliver returns to their shareholders and are acting like they care a lot. We (small retain investors) have little say. Someone is coming to try to offer better future for the business, let's let them have a go. SAG may not increase the offer substantially (maybe a little bit). They will sit still and wait. If TP is not doing well, in one years time the 6.5p will be off the table and another offer may not be there or be lower.
The Directors of the company have an aggregate beneficial interest in 6,400,722 shares (0.8%) Clearly great believers in the company!